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  • 21 - Trade and Climate Change

  • from Addressing Barriers io Change
  • Edited by Kenneth G. H. Baldwin, Australian National University, Canberra, Mark Howden, Australian National University, Canberra, Michael H. Smith, Australian National University, Canberra, Karen Hussey, University of Queensland, Peter J. Dawson
  • Book:
    Transitioning to a Prosperous, Resilient and Carbon-Free Economy
    Published online:
    08 October 2021
    Print publication:
    28 October 2021, pp 571-590

  • Summary

    Concerns about international competitiveness and the associated global institutions and processes of trade are at the heart of resistance to ambitious climate policy. There is tension between the need to be competitive and the significant costs of decarbonisation in the transition to low-carbon economies. The World Trade Organisation and related agreements simultaneously promote contradictory goals: the removal of 'barriers to trade' including 'behind the border' environmental regulation and the need to support 'sustainable development'. A particular example of the problems for action on climate change are Investor-State Dispute Settlement (ISDS) provisions whereby corporations have been able to sue governments for damages allegedly incurred through the operation of government environmental regulations. Five actions are suggested: raising awareness of the benefits of decarbonisation, developing 'green finance', pursuing standardisation of low carbon technologies, reforming trade law to encourage low-carbon goods and services and ensuring copherence across international frameworks.